Sunday, January 13, 2013

Forex - EUR/USD steady, close to 1-week high - The euro was steady against the U.S. dollar on Friday, trading close to a one-week high after positive Chinese data and as the single currency remained supported by Thursday's encouraging comments by European Central Bank President Mario Draghi. 

EUR/USD hit 1.3249 during early European trade, the session low; the pair subsequently consolidated at 1.3262, dipping 0.07%. 

The pair was likely to find support at 1.3173, the low of December 31 and resistance at 1.3308, the high of December 19 and a multi-month high. 

Speaking at the bank’s post-policy meeting press conference Draghi said a gradual economic recovery would begin this year, as structural reforms and actions by the ECB to tackle the region’s debt crisis continued to take effect. 

The comments came after the ECB left interest rates on hold at 0.75% in a widely anticipated decision earlier, but some market participants had expected Draghi to hint at the possibility of rate cuts later in 2013. 

Market sentiment also found support after official data earlier showed that consumer price inflation in China rose to an annualized rate of 2.5% in December from 2.0% the previous month, beating expectations for a rise to 2.3%. 

Elsewhere, the euro was higher against the pound, with EUR/GBPadding 0.10% to hit 0.8216 and against the yen, with EUR/JPY rising 0.29% to hit 118.18.,-close-to-1-week-high-242926

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